Define Important Contract Terms Now to Avoid Litigation Later

What does “cause” mean? In a business contract with no explanation of what constitutes cause, two members of Epic Chophouse, LLC, found they had no option to force the withdrawal of a third member. The Business Court sided with Defendant James Morasso when his business partners Richard Mack and Larry Sponaugle attempted to force him out of their LLC. The three partners could not agree on what “cause” meant in their original business agreements and chose to discuss the issue later. Later did not arrive until Mack and Sponaugle had a falling out with Morasso. This case serves as a reminder that important terms in contracts and operating agreements must have agreed upon explanations or clear evidence that a meeting of the minds has occurred. We can assist in avoiding these kinds of surprises after the fact especially when the words are significant and everyone thinks they know what they mean outside a contract setting.